Short Sale Real Estate

With all the changes in the real estate market Team Poliseno has been able to provide a service called short sales to homeowners that are behind on their payments, owe more than their house is worth or homeowners that want stay in their home and lower their payments.

What is a Short Sale?

A Short Sale is when the bank takes less than what is owed. Team Poliseno handles the short sale process for homeowners by finding qualified buyers and negotiating terms directly with the bank on behalf of the homeowner. The process is simple: a representative meets with the homeowner, analyzes the property and the current situation of the homeowner. We implement a plan of action that will allow the homeowner to avoid foreclosure or reduce their monthly payments through a loan modification. Our short sale department has many years of experience and has helped numerous homeowners avoid foreclosure and in many cases stay in their home through modifying the loan. Every case we work is different depending on the banks involved and the homeowners (past and current financial situation). Our track record shows that we can handle all different types of situations. A typical short sale process takes around 90-180 days. Recently most banks have been responding quicker but every bank is different. During the short sale process the homeowner stays in their home and will have a peace of mind knowing they have experts working on their behalf.

Short Sale Process

Call our office and set an appointment 661-310-3392.
We will come to your home or you can come to our office
Review the short sale packet, fill-out information needed, collect list of documents needed.
Our office will submit the initial packet to the bank then submit the purchase contract when we receive one.
Team Poliseno will list the property and find a qualified buyer. The contract will be sent to the bank with a HUD-1 outlining the cost for all parties involved in the transaction.
After we have a signed contract by seller, we will submit a complete short sale packet to all the lenders involved. After the bank reviews the offer it assigns a loss mitigator or bank representative as point of contact.
The bank will order a BPO to determine current market as-is value.
After the BPO is complete Team Poliseno then negotiates the terms. Either we get a deal approved or continue with the recommendations from the bank.
Once deal is approved we have 30 days to close escrow. You will have updates on a daily basis through our web-based tracing software.

Issue	Foreclosure	Successful Short Sale
Future Fannie Mae Loan - Primary Residence (effective May 21, 2008)	A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.	A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
Future Fannie Mae Loan - Non Primary (effective May 21, 2008)	An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.	An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
Future Loan with any Mortgage Company	On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" this will affect future rates.	There is no similar declaration or question regarding a short sale.
Credit Score	Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.	In some cases only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. In some states default can be reported as a foreclosures however the time a short sale instead of a foreclosure will affect a borrow is much less. A short sale's affect can be a brief as 12 to 18 months.
Credit History	Foreclosure will remain as a public record on a person's credit history for 10 years or more.	A Short Sale is not reported on a persons credit history. There is no specific reporting item for 'short sale'. In most cases a loan is typically reported 'paid in full, settled' or 'paid as negotiated'.
Security Clearances	Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.	A Short Sale on its own does not challenge most security clearances.
Current Employment	Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Future Employment	Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Deficiency Judgment	In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.	In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.
Deficiency Judgment (amount)	In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.	In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.